Leonardo Gambacorta

Head, Innovation and the Digital Economy

Monetary and Economic Department

Leonardo Gambacorta is the Head of the Innovation and the Digital Economy unit at the BIS. Before taking up his current position, Leonardo was Research Adviser (2014-2018) and Head of Monetary Policy (2010-12) in the Monetary and Economic Department. Previously, he was Head of the Money and Credit Unit (2007-09) and Head of the Banking Sector Unit (2004-06) of the Research Department of the Bank of Italy. He was a visiting scholar at the National Bureau of Economic Research (2002-03). He holds an MSc in Economics from the University of Warwick and a PhD in Economics from the University of Pavia. His main interests include monetary transmission mechanisms, the effectiveness of macroprudential policies in curbing systemic risk, and the effects of technological innovation on financial intermediation. He is a research fellow of the Centre for Economic Policy Research.

Fields of interest

Finance
Monetary policy
Central banking

" The cost of steering in financial markets: Evidence from the mortgage market" (with L Guiso, A Pozzi, A Tsoy and P E Mistrulli), Journal of Financial Economics, May 2021.
" Dollar borrowing, firm credit risk, and FX-hedged funding opportunities" (with J Galvez, S Mayordomo and J M Serena), Journal of Corporate Finance, June 2021.
" Assessing the gains from international macroprudential policy cooperation" (with P-R Agénor, T Jackson, E Kharroubi, G Lombardo and L Pereira da Silva), Journal of Money, Credit and Banking, February 2021.
" The shifting drivers of global liquidity" (with S Avdjiev, L Goldberg and S Schiaffi), Journal of International Economics, July 2020.
" From financial innovation to inclusion" (with J Frost and H S Shin), IMF Finance and Development (F&D), spring 2021.
" On the effects of macroprudential policies on Growth-at-Risk" (with M Franta), Economics Letters, 2020.
" How do bank-specific characteristics affect lending? New evidence based on credit registry data from Latin America" (with C Cantú and S Claessens), Journal of Banking and Finance, May 2020.
"How post-crisis regulation has affected bank CEO compensation" (with V Cerasi, S Deininger and T Oliviero), Journal of International Money and Finance, 2020.
" BigTech and the changing structure of financial intermediation" (with J Frost, Yi Huang, H S Shin and P Zbinden), Economic Policy, October 2019.
" The impact of macroprudential policies in Latin America: An empirical analysis using credit registry data" (with A Murcia), Journal of Financial Intermediation, June 2019.
" The supply side of household finance" (with G Foà, L Guiso and PE Mistrulli), Review of Financial Studies, 2019.
" Bank intermediation activity in a low interest rate environment" (with M Brei and C Borio), Economic Notes, 2020.
" "SME Finance in Asia: Recent Innovations in Fintech Credit, Trade Finance, and Beyond" (with G Cornelli, V Davidson, J Frost and K Oishi), in M Amstad, B Huang, P Morgan and S Shirai (eds) “Central bank digital currency and fintech in Asia”, 2019.
" Changing business models in international bank funding" (with A van Rixtel and S Schiaffi), Economic Inquiry, vol 57, no 2, 2019, pp 1038-1055. Also available as BIS Working Papers, no 614.
" Bank lending and loan quality: an emerging economy perspective" (with P Chavan), Empirical Economics, vol 57, no 1, 2019, pp 1-29. Also available as BIS Working Papers, no 595.
" Leverage and risk weighted capital requirements" (with S Karmakar), International Journal of Central Banking, 2018. Also published as BIS Working Papers, no 586.
" Why bank capital matters for monetary policy" (with H S Shin), Journal of Financial Intermediation, vol 35, 2018, pp 17-29. Also published as BIS Working Papers, no 558. 2019 Winner of the JFI Best Paper Award.
" Macroprudential policy and bank risk" (with Y Altunbas and M Binici), Journal of International Money and Finance, vol 81, 2018, pp 203-20. Also published as BIS Working Papers, no 646.
" Monetary policy and bank lending in a low interest rate environment: diminishing effectiveness?" (with C Borio), Journal of Macroeconomics, vol 54B, 2017, pp 217-31. Also published as BIS Working Papers, no 612.
" The influence of monetary policy on bank profitability" (with C Borio and B Hofmann), International Finance, vol 20, 2017, pp 48-63. Also published as BIS Working Papers, no 514.
" Are bank capital ratios pro-cyclical? New evidence and perspectives" (with M Brei), Economic Policy, vol 31, no 86, 2016, pp 357-453. Also published as BIS Working Papers, no 471.
" Relationship and transaction lending in a crisis" (with P Bolton and X Freitas), The Review of Financial Studies, vol 29, no 10, October 2016, pp 2643-76. Also published as BIS Working Papers, no 417.
" Relationship and transaction lending: New evidence and perspectives", Emerging Markets Finance and Trade, vol 52, 2016, pp 70-5.
" Asymmetric information in securitization: an empirical assessment" (with U Albertazzi, G Eramo and C Salleo), Journal of Monetary Economics, vol 71, 2015, pp 33-49. Also published as BIS Working Papers, no 341.
" Has the transmission of policy rates to lending rates changed in the wake of the Global Financial Crisis?" (with A Illes and M Lombardi), International Finance, vol 18, no 3, 2015, pp 263-80. Also published as BIS Working Papers, no 477.
" The use of payment systems data as early indicators of economic activity" (with C Conesa, M Lombardi and S Gorjon), Applied Economics Letters, vol 22, issue 8, 2015, pp 646-50.
" Basel III: long-term impact on economic performance and fluctuations" (with P Angelini, L Clerc, V Cúrdia, A Gerali, A Locarno, R Motto, W Roeger, S Van den Heuvel and J Vlcek), Manchester School, vol 83, issue 2, 2015, pp 217-51. Also published as BIS Working Papers, no 298.
" Understanding global liquidity" (with S Eickmeier and B Hofmann), European Economic Review, vol 68, 2014, pp 1-18. Also published as BIS Working Papers, no 402.
" Should monetary policy lean against the wind? An analysis based on a DSGE model with banking" (with F Signoretti), Journal of Economic Dynamics and Control, vol 43, 2014, pp 146-74. Also published as BIS Working Papers, no 418.
" The effectiveness of unconventional monetary policy at the zero lower bound" (with B Hofmann and G Peersman), Journal of Money, Credit and Banking, vol 46, issue 4, 2014, pp 615-42. Also published as BIS Working Papers, no 384.
" Bank heterogeneity and interest rate setting: What lessons have we learned since Lehman Brothers?", (with P E Mistrulli), Journal of Money, Credit and Banking, vol 46, issue 4, 2014, pp 753-78. Also published as BIS Working Papers, no 359.
" Monetary policy in a downturn: are financial crises special?" (with M Bech and E Kharroubi), International Finance, vol 17, issue 1, 2014, pp 99-119. Also published as BIS Working Papers, no 388.
" Does monetary policy affect bank risk?" (with Y Altunbas and D Marqués), International Journal of Central Banking, vol 10, no 1, 2014, pp 95-135. Also published as BIS Working Papers, no 298.
" Diversification and bank profitability: a nonlinear approach" (with M Scatigna and J Yang), Applied Economics Letters, vol 21, no 6, 2014, pp 438-41.
" Rescue packages and bank lending" (with M Brei and G von Peter), Journal of Banking and Finance, vol 37, issue 2, 2013, pp 490-505. Also published as BIS Working Papers, no 357.
" Structural bank regulation initiatives: approaches and implications" (with A van Rixtel), Bancaria, no 6, June 2013. Also published as BIS Working Papers, no 412.
" Do bank characteristics influence the effect of monetary policy on bank risk?" (with Y Altunbas and D Marqués), Economics Letters, vol 117, issue 1, October 2012.
" Do bank capital and liquidity affect real economic activity in the long run? A VECM analysis for the US", Economic Notes, vol 40. issue 3, 2012, pp 75-91.
" The economic effects of central bank bond purchase programmes" (with B Hofmann), Bancaria, no 3, 2012, pp 38-50.
" The effects of countercyclical capital buffers on bank lending" (with M Drehmann), Applied Economic Letters, vol 19, issue 7, 2012, pp 603-8.
" The bank lending channel: lessons from the crisis" (with D Marqués), Economic Policy, April 2011. Also published as BIS Working Papers, no 345.
" The risks of low interest rates", Ensayos sobre política económica, vol 29, no 64, 2011, pp 14-31. Also published in Italian in Bancaria, January 2011.
" Bank risk and monetary policy" (with Y Altunbas and D Marqués), Journal of Financial Stability, vol 6, issue 3, 2010, pp 121-9.
" Mutual guarantee institutions and small business finance" (with F Columba and P E Mistrulli), Journal of Financial Stability, vol 6, issue 1, 2010, pp 45-54. Also published as BIS Working Papers, no 290.
" Bank profitability and taxation" (with U Albertazzi), Journal of Banking and Finance, vol 34, 2010, pp 2801-10.
" Modelling bank lending in the euro area: a non-linear approach" (with C Rossi), Applied Financial Economics, vol 20, issue 14, 2010, pp 1098-112.
" Securitization and the bank lending channel" (with Y Altunbas and D Marqués), European Economic Review, vol 53, issue 8, 2009, pp 996-1009.
" Bank profitability and the business cycle" (with U Albertazzi), Journal of Financial Stability, vol 5, issue 4, 2009, pp 393-409.
"The effects of mutual guarantee consortia on the quality of bank lending" (with F Columba and P E Mistrulli), Revue Bancaire and Financière, no 4, 2009.
" How do banks set interest rates?", European Economic Review, vol 52, issue 5, 2008, pp 792-819.
" Bank lending for non-financial corporations in the Mezzogiorno", Bancaria, no 1, 2008, pp 52-60 (in Italian).
" Are there asymmetries in the response of bank interest rates to monetary shocks?" (with S Iannotti), Applied Economics, vol 39, issue 19, 2007, pp 2503-17.
" On the activity of Italian mutual guarantee institutions" (with F Columba and P E Mistrulli), Bancaria, no 7, 2006 (in Italian).
" Inside the bank lending channel", European Economic Review, vol 49, issue 7, 2005, pp 1737-59.
"An econometric model for lending to firms in Italy" (with L Casolaro and G Eramo), Moneta e Credito, vol 59, no 234, 2005, pp 151-83 (in Italian).
" A model of profit and loss accounts for the Italian banking system" (with L Casolaro), Bancaria, no 3, 2005, pp 19-27 (in Italian).
" Does bank capital affect lending behaviour?" (with P E Mistrulli), Journal of Financial Intermediation, vol 13, issue 4, 2004, pp 436-57.
" The Bernanke and Blinder model in an open economy: the Italian case" (with P Chiades), German Economic Review, vol 5, issue 1, 2004, pp 1-34.
"An econometric model for lending to households in Italy" (with L Casolaro), Moneta e Credito, vol 58, no 229, 2004, pp 29-56 (in Italian).
" Asymmetric bank lending channels and ECB monetary policy", Economic Modelling, vol 20, no 1, 2003, pp 25-46.
"I prestiti bancari per l'acquisto di abitazioni in Italia e nell'area dell'euro" (with L Casolaro and G Gobbi), Quaderni di Economia Immobiliare, June 2003, pp 24-39 (in Italian).
" On the institutional design of the European monetary union: conservatism, stability pact and economic shocks", Economic Notes, vol 30, no 1, 2001, pp 109-43.
"The effects of structural asymmetries in aggregate demand for ECB monetary policy", Economia Politica, vol 18, no 2, 2001, pp 217-47 (in Italian).
" The effects of monetary policy in the euro area" (with M Ehrmann, J Martinez Pagés, P Sevestre and A Worms), Oxford Review of Economic Policy, vol 19, no 1, 2003, pp58-72.
" The Italian banking system in the euro area" (with G Gobbi and F Panetta), Bancaria, no 3, 2001, pp 21-32 (in Italian).
"The financial instability hypothesis in an open economy", Studi Economici, vol 50, no 56, 1996, pp 63-105 (in Italian).
"Dalla 'crescita con indebitamento' alla 'deflazione da debiti'. L'attuale fase ciclica in una prospettiva storica" (with G Garofalo), Economia e Lavoro, vol 29, no 2, 1995, pp 21-30 (in Italian).
"The Tobin-Tax" (with G Garofalo), Rivista di Politica Economica, no 3, 1994 (in Italian).

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Leonardo Gambacorta

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